Which of the following is a distinguishing feature of a natural monopoly?
a. A rising average total cost curve
b. A declining average total cost curve
c. A declining marginal cost curve
d. A vertical average total cost curve
b
You might also like to view...
If we consider the equation PAE = A + bY the part of the equation that relates to autonomous sources of spending is:
A. b B. Y C. A D. PAE
At one time, policy makers interpreted the Phillips curve as offering a menu of inflation-unemployment choices. Today, the curve is no longer viewed this way. Why has the interpretation changed?
If purchasing power parity holds, then if the price of a basket of goods in the U.S. rose from $1.000 to $1,200 and the price of the same basket in Poland rose from 6,400 Polish zloty to 8,000 zloty, then
a. the nominal exchange rate would be unchanged and the real exchange rate would appreciate. b. the U.S. dollar would appreciate and the real exchange rate would stay the same. c. the nominal exchange rate would be unchanged and the real exchange rate would depreciate. d. the U.S. dollar would depreciate and the real exchange rate would be unchanged.
Exhibit 3-3 Demand curves
Assume that consumers expect the price of gasoline to rise sharply in the future. Which of the graphs in Exhibit 3-3 depicts this effect?
A. Graph A. B. Graph B. C. Graph C. D. Graph D.